A federal judge in Philadelphia has officially closed a significant player rights case in the sports betting sector after MLB Players Inc. and DraftKings announced a resolution to their dispute on April 6.
MLB Players Inc., the business division of the Major League Baseball Players Association (MLBPA), initially filed its complaint in September 2024 in the U.S. District Court for the Eastern District of Pennsylvania. The union accused DraftKings and Bet365 of using the names, images, and likenesses of nearly all active MLB players on their U.S. betting platforms and social media without the necessary licenses.
The MLBPA's claims were based on Pennsylvania’s right of publicity law and common law misappropriation, seeking both compensatory and punitive damages. In response, DraftKings argued that its use of player images was justified as it provided newsworthy content, referencing a 2018 Indiana Supreme Court ruling in Daniels vs. FanDuel that established a “newsworthy” exception for fantasy sports operators. However, U.S. District Judge Karen Spencer Marston did not accept this defense.
In March 2025, Judge Marston denied DraftKings’ motion to dismiss, affirming that the players had made a credible case that the usage was commercial rather than journalistic. She noted that bettors could place wagers without needing to view player photographs, leading the case to proceed to the discovery phase.
Ultimately, both parties reached a settlement in September 2025, with Judge Marston issuing a dismissal order on Monday that formally concluded the case.
Other Related Actions in the Sports Betting Sector
This case was not isolated. The MLBPA has been actively enforcing its members’ image rights. Besides the actions against DraftKings and Bet365, the union also initiated lawsuits in New York against FanDuel and Underdog Fantasy. FanDuel quickly settled in November 2024 for an undisclosed amount and entered into a licensing agreement for the rights it had previously exploited without authorization.
The case against Bet365 was dismissed following a verbal agreement, while a separate lawsuit involving the Pittsburgh Pirates and Sheetz for improper use of names and images was also resolved informally in December 2025.
Additionally, the NFL Players Association filed a federal lawsuit against DraftKings in August 2024, claiming approximately $65 million for breach of contract over the use of player likenesses in selling NFTs. This case reached a non-binding settlement in January 2025. The ongoing litigation highlights the significant revenue potential that image rights represent for players’ associations.
The legal ambiguity surrounding the acceptable use of a player’s name and image without a license remains unresolved, as no court has definitively clarified this issue.
In a related development, the National Basketball Players Association recently finalized a licensing agreement with PrizePicks, a daily fantasy sports operator, allowing them to utilize images of various NBA players in their marketing and promotional efforts. This proactive licensing approach generates revenue for the players’ union from the outset, avoiding costly lawsuits later.
Wider Legal Challenges Facing DraftKings
The MLBPA settlement is just one of many legal issues DraftKings is currently facing. The company is also contending with a trademark infringement lawsuit from the NCAA, which alleges that DraftKings improperly used registered trademarks like “March Madness” to promote its sportsbook during the 2026 tournament.
Furthermore, DraftKings is facing a series of consumer protection lawsuits regarding its marketing practices, with a federal judge recently allowing a class action to advance.